FUEL SURCHARGE

We wanted to remind you that the Chancellor of the Exchequer, Alistair Darling is due to increase tax on diesel by 2 pence per litre in April of this year and our fuel surcharge will therefore increase accordingly.   

This is a very unwelcome, externally imposed tax hike over which we have no control.  We wrote to all customers last year to give you as much advance time as possible to budget for the planned increases and to advise you to build a fuel cost recovery mechanism into your calculations for the next couple of years.

Many organisations, including the Road Haulage Association and the British Chambers of Commerce have argued strongly that the Chancellor should abandon the planned increase and over 700 individual companies have also registered their concerns.  However it appears that the Government’s blinkered transport policy will continue unmitigated and all freight movers should consider the implications for their business.

Fuel costs now account for 50p per mile for an articulated vehicle.  So a journey of 100 miles costs £50 in fuel alone, excluding wages, maintenance or any other overheads – and £25 of the fuel bill is tax (a full 50% of the cost per litre).  Furthermore these additional costs are inevitably passed along the supply chain to the consumer, thus raising the prospect of higher inflation levels.  It is difficult to see that any significant proportion of the additional tax revenue is being invested in transport development or infrastructure and our roads remain congested and poorly maintained, with rail an inefficient and expensive option.

Framptons Transport Services Ltd fully supports environmental initiatives and we work hard to ensure that we run a clean, responsible operation.  We regularly replace vehicles and our latest additions have Euro 5 engines. The fuel we use has the maximum recommended amount of Biodiesel added to it.  Studies show that shared- user network distribution maximises utilisation of vehicles and roads, removing ‘empty running’ miles.  Night trunking keeps our congested road system freer during the working day.  Road transport is flexible and responsive and has an essential part to play in the British economy which the Government should recognize.  

What should you do? 

• Budget for additional costs. Every 1 pence per litre difference in fuel impacts on our overall operating costs by .5%, so a 2 pence increase in the tax burden, will add another 1% to our fuel surcharge in April 2008, and again in April 2009 and this will be on top of any movement due to the global oil market.
• Prepare your customers – if you are not planning to absorb the additional costs, you will want to be able to recover them.   
• Ask the Government to reconsider. Last year, we invited everyone to join us in writing to the Chancellor and we know that many people were sufficiently concerned about the implications for the competitiveness of their business to take the time to voice their protest.  If you did so, we hope the cumulative effect will eventually get through.  If you considered it, but didn’t get round to it and would like to now, please contact me gilly.walters@framptons.co.uk for the address and if you would like one, a template letter. 
• Ask our advice – perhaps you can consolidate goods, or deliver on a 2-3 day service?  We may be able to identify an opportunity to reduce your freight costs by doing things differently.

The London Low Emissions Zone will be enforced from Monday 4th February 2008 and will affect most commercial vehicles.  Mobile cameras will scan number plates within the Zone and check them against a database of registered vehicles that either meet the emissions standards or are exempt or have paid the daily charge.   For more information please see www.tfl.gov.uk/roadusers/lez

NEW WAREHOUSE UNDER CONSTRUCTION

The ground has been broken for our new 31,000 square feet warehouse in Crowne Trading Estate, Shepton Mallet, which is being purpose-built to our specification.  At the moment it's a building site as the ground preparation takes place, but we expect it to be completed by late summer this year.

NEW LIVERY FOR CROWN PET FOODS

We thought all the cat and dog lovers among you would like to see the striking new Royal Canin and James Wellbeloved trailer livery which Framptons Transport Services and Crown Pet Foods have collaborated together on.   

Crown Pet Foods is the UK subsidiary of Royal Canin SA and represents the brands of Royal Canin and James Wellbeloved.   

The finished vehicles will be ready in time for Crufts at the NEC at the beginning of March. 

For more information please visit

www.framptons.co.uk

Framptons Transport Services Ltd, Crowne Trading Estate, Shepton Mallet, BA4 5QQ, England

Tel: +44 (0)1749 333400 Fax: +44 (0)1749 346249

Email: sales@framptons.co.uk